“At the upper price band of Rs 661 the issue is offered at eight times its FY17 book value (BV). While on the reported numbers it might appear to be fairly valued, we believe with strong potential to deliver high double-digit growth for next multiple years, the issue looks decently priced, and hence we have a a ‘subscribe’ rating on the issue," said Siddharth Purohit, senior equity research analyst- banking, Angel Broking in a note.

“At this valuation the issue seems expensive…In May 2017, Fairfax Financial Holdings sold 12.2% of its stake, held through a wholly-owned subsidiary FAL Corporation, valuing the company at Rs 20,000 crore (about 5.4 times its FY17 BV). The current issue valuation is at 8.1 times – a sharp increase in premium in such short span may not be justified," said a note by Centrum.

ICICI Lombard is the second IPO from the ICICI Bank stable in the past one year. Last September, ICICI Prudential Life Insurance had come out with a Rs 6,000-crore IPO in which ICICI Bank had sold its 12.63% stake.